Ontario fast-tracks Frontier Lithium’s PAK project

Frontier Lithium’s (TSXV: FL) C$943 million capex PAK project is Ontario’s first entry in a program to approve mines in two years.Provincial Energy and Mines Minister Stephen Lecce announced the One Project, One Process (1P1P) program Oct. 17, vowing to cut permitting time for advanced projects in half. Under Premier Doug Ford, the province has joined a chorus of Western governments – including the Trump Administration – in slashing red tape and promoting critical minerals to challenge Chinese control of the industry.“Clarity and predictability in permitting are key to unlocking investment, accelerating project timelines and delivering on Canada’s critical minerals strategy,” Frontier President and CEO Trevor Walker said in a release on Wednesday. “We are hoping to achieve final investment decision in 2027 and lithium production in 2030-2031,” Walker said by email via a spokesperson.Frontier is working with Japanese conglomerate Mitsubishi to develop PAK, which is located more than 1,400 km northwest of Toronto, near the Manitoba-Ontario border. The high-grade, large-scale hard rock lithium project would produce 200,000 tonnes of spodumene concentrate annually over a 31-year mine life and generate pre-tax earnings of C$285 million a year, according to a feasibility study issued in May. Frontier has pegged an after-tax internal rate of return of 18%.Frontier shares shot up 13% to C$0.76 apiece on the Toronto Stock Exchange Thursday, valuing the company at about C$174 million.Conversion plantFrontier is planning a lithium conversion plant in Thunder Bay linked to PAK and faces several challenges typical of large, integrated battery-materials ventures. The remote location requires new infrastructure such as road upgrades and power transmission, while permitting and Indigenous consultation remain critical steps despite the new fast-tracking. The company must also manage the technical complexity of combining mining and downstream lithium conversion, high upfront capital costs, and market volatility as lithium prices have weakened.The project is in the traditional territory of people guided by Anishinninew law, Deer Lake, Keewaywin, North Spirit Lake and Sandy Lake First Nations. PAK could generate up to C$1.5 billion in gross domestic product, C$124 million in tax revenues, and create more than 2,000 full-time jobs during construction alone, according to the province.Ontario’s 1P1P framework creates a centralized permitting and authorization model that aims give investors and developers the confidence to build mines and create jobs across northern Ontario, Lecce said this month. Part of the time savings can come from collaborations across ministries, he said.FundingPAK has been on the provincial and federal support radar for a while. During the Prospectors and Developers Association of Canada conference in March, the federal government said it would fund up to C$120 million with potential matching funds from Ontario.A year ago, Ottawa approved C$6.1 million from the Critical Minerals Infrastructure Fund for infrastructure pre-construction including environmental studies, an all-season access road and a power-transmission link to PAK.Mitsubishi last year agreed to invest an initial C$25 million for a 7.5% stake in a Frontier subsidiary with an option to increase it to 25% after the feasibility study.The 280-sq.-km project has a net present value of C$932 million using a discount rate of 8%, according to the feasibility study. PAK hosts proven and probable reserves of 31.1 million tonnes at 1.51% lithium oxide across three spodumene-bearing deposits, PAK, Spark and Bolt. The maiden inferred resource at the Bolt deposit is 5.5 million tonnes at 1.23% lithium oxide, the study shows.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com